LONDON (Alliance News) - Stanley Gibbons Group PLC Thursday said it expects profit and sales for its financial year ending March 31 to be "materially below current expectations" due to anticipated high value sales failing to complete.
However the retailer, which specialises in stamp collection, said profit and sales will show "significant growth" compared to the prior year resulting from recent acquisitions, and that the failed sales should complete in the first half of its current financial year.
The company bought antique dealer Mallett PLC in October and said Mallett's contribution since then has been in line with expectations, having made "strong progress" with its strategy of reducing its stock levels and generating cash.
It said the acquisition has delivered cost saving benefits and enabled the company to secure a number of major auction consignments.
The company's new website is due to be launched in May, behind its original schedule date of March, which it expects will deliver material growth in gross merchandise value.
The group also said it has appointed a new marketing director and commercial director, but didn't reveal their names.
"Although disappointed by our failure to deliver the high value sales in 2014/15 necessary to meet market expectations, the board is satisfied with the progress which has been made in the past year. We are delivering on our long term strategic objectives, which have the potential to transform both the business and the collectibles market as a whole," Chairman Martin Bralsford said in a statement.
"Following two years of substantial investment, our long anticipated online development plans are finally reaching fruition in May. The board looks forward to realising continued value from recent acquisitions made together with generating substantial growth in online revenues in the current year," he concluded.
Shares in Stanley Gibbons were trading down 14.9% at 226.26 pence early Thursday morning, one of the worst performers in the AIM All-Share.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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